New Standards for Insurance Companies to Benefit Florida Consumers

Tallahassee – New legislation passed today and sponsored by Senator David Simmons and Representative Clay Ingram will modernize insurer solvency regulation in Florida to the benefit of Florida policyholders. The bill, SB 1308, makes fundamental changes in the way insurance companies and their affiliates are supervised by state regulators. The bill also adopts a principle-based approach to establishing insurer reserves for term life and certain universal life insurance products popular with Florida consumers.

“The new solvency requirements are in part responsive to the financial crisis and helped strengthen the state regulation of insurance holding companies,” said Kevin McCarty, Florida’s Insurance Commissioner, who helped develop the standards during his tenure as NAIC President in 2012. “Having a more complete picture of the entire enterprise will put us in a much better position to respond effectively to threats to the financial stability of insurance companies. We thank the Legislature for passing, and Senator Simmons and Representative Ingram for sponsoring, this important Office priority during this legislative session,” he added.

Entire Press Release: .pdf | Office of Insurance Regulation